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The Australian Night Time Economy - Looking to the future - Council of Capital City ...
The Australian Night Time Economy
Looking to the future

A project for the Council of Capital City Lord Mayors

December 2021

                                                        Ingenium Research
The Australian Night Time Economy - Looking to the future - Council of Capital City ...
Document Information

Table of Contents
KEY FINDINGS...................................................................................................................................................... 3
INTRODUCTION.................................................................................................................................................. 5
THE CONSUMER ................................................................................................................................................. 8
THE BUSINESS ..................................................................................................................................................... 9
THE CITY .............................................................................................................................................................. 11

Document Information

  Project Reference Number                                P21-10-01

  Title                                                   The Australian Night Time Economy: Looking to the future

  Version number                                          Final

  Last update                                             21/12/21

  Name of Authors                                         Anna Edwards, Andrew License

  Document Status                                         Publicly available

  Approval Status                                         Final

This report contains findings of the first Australian Night Time Industries Survey. The survey ran between the
18th and 30th of November 2021 and was distributed to night time economy businesses across Australia through
city councils, industry bodies and key stakeholders. The survey received a total of 262 complete responses and
results were weighted to the Australian Bureau of Statistics’ Counts of Australian Businesses, including Entries
and Exits dataset based on state / territory and industry grouping, to ensure proportions reflect the distribution
of entity population groupings.

Please see the supplementary appendices report for a detailed breakdown of survey findings and references.

Enquiries about this document can be addressed to:
Andrew License / Anna Edwards / Terry Bevan
E: anna@ingeniumresearch.com.au
E: andrew@ingeniumresearch.com.au
                                                                                                                                         Ingenium Research
21 December 2021

                                                                                               Ingenium Research Pty Ltd, Melbourne, Australia
                                                                                                        ACN: 619676112, GST No: 90619676112

Page |2                                                                                                            Prepared by Ingenium Research - December 2021
The Australian Night Time Economy - Looking to the future - Council of Capital City ...
Key Findings
Challenges and opportunities
          Pandemic uncertainty
          Businesses continue to experience the impacts of the pandemic, with the identification of the Omicron
          variant and potential for future lockdowns creating uncertainty. The provision of clear and timely
          information, along with certainty of support has been noted as important by businesses.

          City footfall and consumer behaviour
          Hybrid working is expected to create long lasting change within our cities, including reduced footfall and
          public transport use and shifts in activity by day of the week and time of the day. This, alongside new
          customer trends, is creating challenges for night time businesses. A range of strategies should be adopted
          to orchestrate a return to the city, with nightlife businesses acting as key stakeholders in achieving this.
          Key opportunities:
              •   Diversify the city’s offering and attract new audiences through experiences and events (p.11)
              •   Support live music and the arts, advocating for state/territory event insurance schemes (p.10)
              •   Investigate the potential for implementing city loyalty programs, with the possibility of
                  incorporating gamification techniques that encourage repeat visits to the city (p.11)
              •   Further promote COVID-safety measures on public transport to encourage increased use, and
                  consider flexible pricing and timetabling models (p.12)
              •   Invest in infrastructure to make cities, attractive, globally recognisable and safe at night (p.12).

          Staffing and skills
          Staff and skills shortages are currently the most common challenge faced by night time businesses. The
          return of overseas students and travellers will somewhat help to alleviate this, but there is an opportunity
          for government to support a review of casualisation, pay and working conditions. Investment in the
          development of career pathways and training of the workforce could also strengthen the underlying
          quality and diversity of night time services.
          Key opportunities:
              •   Further investigate employment challenges within the sector and ways in which government can
                  support businesses to improve employee conditions (p.9).

          Planning and regulation
          Local, state/territory, and national governments acted quickly to implement new schemes and adapt
          regulations during the pandemic. The retention of these interventions and flexibility of regulation offer
          the opportunity to create a lasting legacy. Many businesses surveyed have called for further relaxation of
          regulations to support entrepreneurial behaviour.
          Key opportunities:
              •   Ensure planning policies take the development of the night time economies into consideration,
                  including noise management and balancing the needs of residents and businesses (p.12)
              •   Consider the long-term retention of, and support for, outdoor dining (p.12)
              •   Create avenues for businesses to collaborate with governments, to share ideas and identify
                  further challenges and opportunities (p.12).

Page |3                                                                   Prepared by Ingenium Research - December 2021
The Australian Night Time Economy - Looking to the future - Council of Capital City ...
Key themes within this report
Consumer                                          Business                                         City
Consumer sentiment                                Employment challenges                            City utilisation
Spending, consumption, and travel set to          80%+ of businesses face staff shortages due      Reduced office occupancy and hybrid
improve. Considerations around mental             to lack of international students/travellers     working has shifted activity to the suburbs.
health impacts and how to include those           and people leaving the industry, partly          Opportunities to promote the central social /
more vulnerable.                                  resulting in reduced trading hours.              entertainment / experience district.

Accelerated consumer trends                       Pandemic safety measures                         Transport and travel
Increased use of home entertainment, digital      Keeping up with regulations and policing         Use of public transport substantially down
services, and meal delivery services. Cities to   vaccine certification can be challenging.        compared to pre-pandemic and more people
adapt to deliver new experiences that bring       Opportunities to improve ventilation.            driving. More frequent/less crowded services
people back into city centres.                    Ongoing uncertainties.                           and revised pricing models may assist.

                                                  Business financial impacts                       City planning and regulation
                                                  Reduced activity coupled with increasing         Innovative and timely adaptions during the
                                                  costs is a challenge. Event insurance is an      pandemic were beneficial. There is potential
                                                  issue for some. Tourism, localism and a          for further red tape reduction, creating a
                                                  return to normality are key opportunities.       lasting legacy.

Page |4                                                                                          Prepared by Ingenium Research - December 2021
Introduction
The report Measuring the Australian Night Time Economy           collaboration between industry and government to
2019-20 highlighted the devastating impact of the COVID-         develop positive night time governance solutions.
19 pandemic on the Australian night time economy during
                                                                 To inform this process, an industry survey was conducted
the first three months to June 2020. Since then, the night
                                                                 from 18-30 November 2021, collecting the perspectives of
time economy (food, drink and entertainment) has
                                                                 more than 250 night time businesses across Australia. This
experienced a rollercoaster of challenges, including snap
                                                                 report collates these findings to identify key short, medium,
lockdowns and changing trading conditions.
                                                                 and long term challenges that the consumer, the business,
High rates of vaccination across Australia has provided a        and the city may face – and the potential solutions and
sense of optimism and a clear opportunity to move                opportunities that may assist in putting the sector in the
forward. On 6 August 2021, all states and territories agreed     best position possible as we look to the future.
to a National Plan to transition Australia’s COVID-19
                                                                 Case study: Ireland’s experience
response. The National Plan states that once 80% of
Australians are double vaccinated there will be minimal          By early September 2021, Ireland had successfully double
domestic restrictions in place. At the time of writing,          vaccinated more than 90% of its adult population (18+) and
Australia has surpassed this milestone. All states and           looked to have effectively made the transition from
territories expected to reach a vaccination rate of 90%+         pandemic to endemic.
(age 16+) by mid-February 2022.
                                                                 Despite this success, in late October and early November
Over the past eighteen months, social and economic               2021 the country began to experience a dramatic increase
patterns have been in a state of constant flux, with rules and   in cases and hospitalisations. By mid-November the
restrictions often changing within days or hours in response     Government had reinstated several measures, including,
to the identification of new COVID cases. The uncertain
                                                                     •    Working from home where possible
environment led governments, businesses, and individuals
                                                                     •    Proof of immunity to attend cinemas or theatres
to react to changing pandemic contexts, instead of
                                                                     •    Reducing trading hours of pubs, restaurants,
proactively planning change.
                                                                          nightclubs, and licenced venues to midnight.
The pandemic generated a greater awareness and                       •    Limits on table sizes in restaurants / pubs.
acknowledgement of the importance of social contact and
                                                                 Other recommendations included a review of building
the role that our night time industries play in this.
                                                                 ventilation as the country moves towards winter and
There remains a level of uncertainty that cannot be ignored      socialising   moves    indoors,    a   series   of   targeted
(e.g. When do we stop testing? How long will measures stay       communications around the correct usage of masks and
in place?). Australia’s success in passing the milestones laid   compliance and booster vaccinations for those aged 50+.
out in the National Plan, however, provide a level of            As of 7 December, additional rules include the closure of
confidence that offers its capital cities the opportunity to     nightclubs and table-service only in pubs and restaurants.
strategically plan for the future of the night time economy      In response to this, the Government is providing targeted
using examples from other countries and cities to learn          financial support for the hospitality sector.
valuable lessons from reopening.
                                                                 Experiences such as this highlight that while Australia has
The strong and resilient recovery of Australia’s urban night     made great strides in its vaccination efforts, there are likely
time economies is a key lever in attracting people back to       to be further trials ahead with COVID-19 – particularly as
city centres. This will be dependent on partnership and          we move into winter.

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Introduction

The states and territories of Australia have all experienced the pandemic very differently, with some areas remaining relatively
untouched by the virus and others experiencing large outbreaks leading to substantial periods of lockdown and restrictions. A
high-level overview of these experiences is provided below through a lens of cases, deaths, vaccination rates and mobility.

Businesses surveyed in areas with high community transmission (>2,000 cases) were much more likely to have closed for more
than 50 days (71%) compared to areas with lower caseloads (28%). Perhaps associated with this, 84% of businesses in high case
load areas reported declines in business activity or sales turnover, compared to 51% in lower caseload areas. Based on this, it
is likely that each area will encounter different experiences and challenges as the virus moves from pandemic to endemic within
each jurisdiction
       Case load: Low      WA                  Case load: Low      NT                   Case load: Low         QLD               Case load: High         NSW
      Community cases      115                Community cases       82                 Community cases          590             Community cases         78,726
                 Deaths     9                           Deaths      0                             Deaths         7                         Deaths         628
    Fully vaccinated 16+   77%             Fully vaccinated 16+    78%               Fully vaccinated 16+      78%            Fully vaccinated 16+        93%

Google mobility trends to retail & recreation sites: February 2020 – November 2021

                                                                                                                                   Community transmission cases
                                                                                                                                   since beginning of the pandemic

 Cases, deaths, and vaccination rates as of 3rd December 2021

       Case load: Low      SA                 Case load: High      VIC                  Case load: High        ACT               Case load: Low           TAS
      Community cases      261                Community cases     124,222              Community cases         2,048            Community cases           154
                 Deaths     4                           Deaths     1,357                          Deaths        14                         Deaths          13
    Fully vaccinated 16+   82%             Fully vaccinated 16+    91%               Fully vaccinated 16+      99%            Fully vaccinated 16+        88%

Google mobility trends to retail & recreation sites: February 2020 – November 2021

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Page |7   Prepared by Ingenium Research - December 2021
The Consumer
Depending on the state or territory, consumers of night time economy services have had vastly different experiences over the
past 18 to 24 months. In Western Australia or Northern Territory consumers may not have seen many differences, when
compared to patrons in New South Wales and Victoria, who have effectively been locked out of the night time sector for
months on end. The changes in consumer behaviour over this period are important to consider as Australia re-opens.

Consumer sentiment                                                 Accelerated consumer trends
Household consumption has been forecast to rebound                 The advent of the pandemic and stay at home orders has
during the December 2021 and March 2022 quarters, as               led to the acceleration of many trends that were already in
vaccination targets in the National Plan are met and               motion. For example, the increasing popularity of meal
pandemic restrictions ease. This latent demand is expected         delivery services is a trend accelerated as a direct result of
to result in increased domestic spend, as Australians make         the pandemic. For many businesses (37% of those
up for lost time and seek out experiences they have missed         surveyed), the introduction of takeaway and/or delivery
over the past eighteen months. Economists have estimated           services was their only option while pandemic restrictions
that by late 2021, Australians’ savings will be $230bn higher      were in place. Whether this trend continues remains to be
than normal. In June 2021, 27% of Australians expected             seen, with half of businesses stating that these new services
their spending would increase over the following twelve            were here to stay, and the other half stating they intended
months, especially among those with lower household                for them to be only temporary.
incomes. Almost one third (32%) planned to use savings to
                                                                   Outside of delivery services, many businesses have pivoted
spend on travel over the next year and travel sentiment is
                                                                   their operating models during COVID-19 to adapt and
improving – a key component of the night time industries.
                                                                   survive. Of those that had introduced new products or
  “There [are] a huge number of young people coming                services, the most common were moving services online
  of age who missed out on their night lives when they             (e.g. live streamed events), the introduction of at-table
  hit 18 years of age. There [are] a lot of customers there        ordering (e.g. via QR code) and development of entirely
  waiting to experience Australian nightlife”                      new product lines (e.g. packaged products).
  (Pub, bar, tavern, November 2021).
                                                                   Between 2019 and 2021, Australians substantially increased
It is recognised that COVID-19 can impact mental health            spending on home entertainment equipment (+44%) and
and wellbeing. For those states particularly impacted by           video-on-demand services (+56%) such as Netflix, Stan and
long lockdowns, there is likely to be an impact on the             Amazon Prime. Investment in these services, combined
mental health of many consumers in the immediate to short          with the potential hesitancy on returning to normal, could
term, with some feeling anxious about returning to                 present a challenge for the sector in encouraging
normality. This may also be a factor in states and territories     individuals to reengage directly with the night time
that have been less affected by the pandemic, as these             economy. This is explored later in The City section,
states and territories transition to living with increasing case   however, positioning our Central Business Districts (CBDs)
numbers. In either case, it will be important to be mindful        towards Central Entertainment or Experience Districts could
of those in society that are more vulnerable to the virus          assist. CBDs could become a greater focus of new
such as the elderly, the unvaccinated, Indigenous                  experiences (e.g. board game cafes, permanent lighting
Australians, people with disability or illness as well as the      displays, public art) or events that attract new audiences
homeless. There is the potential that those in these groups        and move beyond the traditional nightlife focus, thereby
may move away from traditional night time experiences,             expediting an existing trend to diversify the offer and move
instead opting for social get-togethers within closed circles.     beyond the focus on alcohol-centric business models.

Page |8                                                                            Prepared by Ingenium Research - December 2021
The Business
Businesses across Australia have been impacted by the pandemic, with the hospitality and night time industries (food, drink
and entertainment) being particularly hard hit. Governments quickly mobilised to support the sector, enabling initiatives such
as outdoor dining to allow businesses to continue to trade within restricted density limits. The pandemic will leave a lasting
impact on these businesses and the ways in which they trade going forward.

Employment challenges                                              Pandemic safety measures
While the night time industries experienced a substantial          The pandemic has brought many new rules and regulations
loss in jobs during the pandemic, the most commonly cited          for businesses. The fast-changing pace of rules can be
challenge now faced is skills and staffing shortages, with         challenging to keep up with, especially for businesses
81% of night time business surveyed experiencing this issue.       operating in multiple jurisdictions. Just 29% of surveyed
For 38% of these businesses, this has led to reduced trading       businesses found it easy to keep up to date with COVID-19
days or hours of operation, particularly from Monday to            requirements, while 26% found it difficult. Those finding it
Thursday. Related to this, almost 40% of businesses stated         challenging suggested a federal government website or
that their staffing costs had increased by more than 10%.          resource covering all states and territories would be helpful.
                                                                   While keeping up to date proved challenging, businesses
  “Many hospitality operators are not opening at all
                                                                   generally found it easier to implement the requirements.
  early week or to capacity at weekends as they simply
  do not have staff to operate. The situation has                  Australia’s National Plan ends with a final post-vaccination
  morphed into a 'bidding' war with larger groups                  phase, with no recovery phase to address economic
  poaching key staff. Whilst the opening of international          impacts and to rebuild resilience. A related concern is
  borders will resolve some of the issues, shortages,              pandemic uncertainty, with less than half (47%) of surveyed
  especially in trained chefs was evident prior to the             businesses feeling optimistic about the future in light of
  pandemic and is now at an all time critical point”               current pandemic circumstances.
  (Advocacy body, November 2021)
                                                                   Netherlands: High vaccination, partial lockdown
The two primary reasons for current staffing shortages cited
                                                                   On November 13th 2021 a partial lockdown was
by surveyed businesses were fewer overseas students /
                                                                   reintroduced after hospitalisations increased to 200+ per
travellers and people leaving the industry - reasons for
                                                                   day, despite a vaccination rate at 83% among people aged
which could include (among others) a desire for home
                                                                   12+. The lockdown enforced hospitality establishments to
working or pandemic fears. The reopening of borders and
                                                                   close between 8pm and 6am every night. On 26
the staged return of international students, should help to
                                                                   November, further restrictions were introduced including
alleviate this issue in 2022. Staff shortages have also shone
                                                                   almost all businesses closing between 5pm and 5am.
a spotlight on the employment conditions of hospitality
workers, with many experiencing low pay, wage theft, a lack        Safe Work Australia provide pandemic related workplace
of career development opportunities and low job security           guidance for specific industries, including hospitality and
through casualisation.                                             live entertainment. Guidance is also provided on the use of
                                                                   heating, ventilation and air conditioning systems during
Canada: hospitality staffing shortages
                                                                   COVID-19. In March 2021, the World Health Organisation
Businesses in many countries are finding it difficult to fill      published a roadmap to improve indoor ventilation in the
staff vacancies within hospitality. The food service sector in     context of COVID-19. Despite this, only 9% of businesses
Canada is struggling to fill the 130,000 hospitality vacancies     surveyed said they are planning further adaptions to their
needed to return to pre-pandemic levels of employment.             venues, with some alluding to ventilation improvements.

Page |9                                                                            Prepared by Ingenium Research - December 2021
The Business

 On 1 November, the Therapeutic Goods Administration                                     changing conditions. One feature that many businesses
 approved rapid antigen testing for supply in Australia,                                 (29% of those surveyed) have introduced is a no-show or
 although only 8% of night time businesses surveyed plan                                 late cancellation fee with 69% of these businesses indicating
 to – or are currently using – the tests as part of their                                they intended to retain the policy going forward.
 business model, with some citing the cost as prohibitive.
                                                                                         In addition to reduced activity, businesses are also incurring
 UK: Free rapid antigen testing                                                          additional costs as a direct result of the pandemic. The cost
                                                                                         of cleaning and hygiene materials increased by more than
 In March 2021 the UK Government began offering free
                                                                                         10% for nearly 57% of businesses surveyed. While 41% of
 rapid antigen tests to all businesses. While these tests can
                                                                                         businesses noted that supplier costs had increased by more
 no longer be ordered by businesses, they remain free of
                                                                                         than 10%, an encouraging 80% of businesses stated they
 charge to members of the public.
                                                                                         had seen no increase in premises rental costs.
 Australia has adopted a proof of COVID-19 vaccination
                                                                                         Nearly 43% of businesses surveyed had experienced
 certification scheme, which has been used as a “vaccine
                                                                                         increases in insurance costs – particularly event insurance.
 passport” to allow access to certain venues and services
                                                                                         Many businesses cite live music and performing arts as a
 while waiting for vaccination rates to increase.
                                                                                         key opportunity for the sector, but pandemic uncertainty
 Germany: Vaccinated economy system                                                      has resulted in insurance being more expensive or, in some
                                                                                         cases, unobtainable. The Live Performance Federal
 On 2 December 2021 in response to the fourth wave, and
                                                                                         Insurance Guarantee Fund Bill, which aimed to provide a
 with an aim of reducing the number of infections and
                                                                                         federal fund to support the sector, was recently tabled in
 relieving the burden on the healthcare system, the German
                                                                                         parliament. Federal Government recommended that the
 Government introduced a range of new rules based on
                                                                                         bill not be passed, indicating that the issue should be
 vaccination status, including limiting access of unvaccinated
                                                                                         managed by states and territories and citing programs in
 people to non-essential retail, cultural and leisure venues.
                                                                                         Western Australia and Tasmania. Additionally, the Victorian
 Consumer safety remains high on the agenda, with many                                   Government has announced the first Australian COVID-19
 businesses highlighting its importance for both pandemic                                event insurance product. This is likely to be a continuing
 safety measures and managing antisocial behaviour. Some                                 issue for the industry in other states and territories.
 businesses reported challenges with policing vaccination
                                                                                         The decreased activity combined with rising costs, are likely
 status.
                                                                                         key drivers behind 37% of businesses surveyed increasing
 Business financial impact                                                               prices since the onset of the pandemic. As restrictions lift in
                                                                                         jurisdictions with high caseloads, many businesses will be
 Night time businesses were particularly impacted by the
                                                                                         looking to their local councils for support in how to entice
 pandemic. Of the businesses surveyed as part of this
                                                                                         patrons back to the city, while in jurisdictions with fewer
 research, 72% stated that their activity or sales turnover was
                                                                                         cases it will be more about applying learnings on safe
 lower than an equivalent time pre-pandemic, with 37% of
                                                                                         trading as COVID-19 enters the community.
 businesses indicating they were experiencing a decline in
 activity of more than 50%.                                                              Almost half (47%) of businesses surveyed feel optimistic
                                                                                         about the future in the current pandemic circumstances,
 Many businesses (75% of those surveyed) have introduced
                                                                                         with perceived opportunities including a return to normality
 at least one new service or product to pivot due to
                                                                                         and tourism, the potential to broaden the diversity of the
                                                                                         customer base and an extension of opening hours.
Key financial survey findings (Proportion of businesses)

     55%                          72%                           37%                       73%                              46%                        37%
 closed for over 50            with lower activity /        experiencing 50%+          experiencing 10%+                incurring additional        Increased prices
        days                      sales turnover           decline in activity/sales    additional costs                   debt or loan             (since the onset of the
                                                                                                                                                          pandemic)
  (as a direct result of the   (than a similar time pre-          turnover             (as a direct result of the           repayments
         pandemic)                    pandemic)               (due to the pandemic)           pandemic)                  (due to the pandemic)

 P a g e | 10                                                                                                       Prepared by Ingenium Research - December 2021
The City
Central Business Districts (CBDs) across Australia have experienced substantial changes following the onset of the pandemic.
With many people now working from home, office occupancy rates and public transport use across the states and territories
remain below pre-pandemic levels. While governments across Australia quickly mobilised to support their night time industries,
the nature of CBDs are evolving, and Australia’s cities are actively developing approaches to entice patrons back.

City utilisation
The estimated proportion of Australians working from                the potential that is created through face-to-face
home increased from just 8% in 2019 to 40% in 2020, and             collaboration and social interaction.
38% in 2021. It is anticipated that the amount of home,
                                                                    Schemes such as MyDarwin discounts, NSW’s Dine &
flexible and hybrid working is likely to remain substantially
                                                                    Discover, and Melbourne Money have helped alleviate this
higher than pre-pandemic levels. This will impact on
                                                                    in the immediate term. A longer-term solution could build
economic activity within city centres, dispersing some
                                                                    gamification into these concepts (e.g. maintain a streak of
activity to the suburbs and regional locations.
                                                                    mid-week visits, visit all areas of the city within a month) as
It has been suggested that there could be a shift away from         an innovative way to encourage city loyalty or repeat visits.
shopping and office use towards more cultural and civic
                                                                    Scotland: Miconex loyalty and gift cards
uses. Others have called for a reimagining of cities from
Central Business Districts to Central Entertainment,                Miconex has been operating city-wide gift card programs
Experience or Social Districts.                                     in the UK since 2010. The company also runs place-based
                                                                    loyalty programs that reward customers for spending
In October 2021, office occupancy rates in Australia’s capital
                                                                    money at registered businesses. In July 2021 the Scottish
cities remained below pre-pandemic levels, ranging from
                                                                    Government backed the rollout of Miconex’s “Scotland
92% in Hobart and Darwin to just 4% and 7% in Melbourne
                                                                    Loves Local” gift card to all 32 local government areas to
and Canberra respectively. A November survey found that
                                                                    support recovery by encouraging people to spend locally
occupancy rates were improving but 62% of office owners
believe that any major improvements in occupancy are                There is also the potential that the times people commute
unlikely to occur in the next three months. Similarly, there        to work could change beyond the 9am-5pm, with some
has been a rise in empty shopfronts, with retail vacancy            starting work earlier or finishing later to avoid peak
rates in Australia’s capital cities during the first half of 2021   commuting periods. These trends could impact when
ranging from 8% in Sydney to 27% in Perth. It is possible           consumers seek night time economy services.
that these trends could lead to a long-term fall in demand
                                                                    London: Attracting people back to the city
for commercial property in CBDs.
                                                                    In 2020, the Mayor of London published a report on
Cities are experiencing a shift in activity by day of week. For
                                                                    COVID-19 and the recovery of life at night and in May 2021,
example, in January to November 2021, visits to workplaces
                                                                    a domestic tourism campaign was announced. This
in Australia’s capital cities were down on average 20% on
                                                                    included Let’s Do London; a scheme developed in
Mondays and 15% on Wednesdays.
                                                                    partnership with hospitality, culture, and retail to entice
An interdependency exists between the number of office              Londoners back to the city through special events. London
workers, retail, and the “sandwich” (lunchtime), “twilight”         First (a group representing London’s leading employers) is
(after work) and night time economies. Therefore, it will be        calling for an extension of funding for this scheme.
important to attract people back at all times of the day by
reminding them of all the things unique to city centres and

P a g e | 11                                                                        Prepared by Ingenium Research - December 2021
The City

Transport and travel                                               City planning and regulation
As of 1 December 2021, the number of people using public           It will be vital that planning and zoning policy enables
transport in Australia is 9% lower than at pre-pandemic            responsive change and flexible uses for the repurposing of
levels, while the number driving is 31% higher. This data          commercial space. While the underlying future of urban
indicates that the reduced use of public transport is a            retail is uncertain due to the rise in e-commerce, there will
greater issue for cities that have endured longer lockdowns        likely be demand for collaborative and hybrid working
and case numbers (Melbourne (-14%) and Sydney (-15%)),             spaces. Another existing issue that may be exacerbated by
when compared to cities with a lesser pandemic impact              changes to city use is noise complaints, with many night
(Perth +2%, Brisbane -2%).                                         time businesses surveyed citing this as a challenge.

Drivers of changes in behaviours are likely to include             Outdoor dining and events and the establishment of
pandemic fears, irregular commuting patterns (making               parklets helped many night time economy businesses to
annual travel passes less economically viable) and, in some        survive during the pandemic. After grant funding, outdoor
locations reduced services/timetabling. This is an important       dining was the most commonly cited government initiative
issue in the context of climate change. It is also an              that hospitality businesses hope will be retained. Of the
important consideration for Australian cities working              38% of food and drink venues surveyed that introduced
towards the 30-minute city concept.                                outdoor dining, the majority (56%) plan for it to stay.

The Productivity Commission are currently researching              Access to blue, green and recreational spaces that are well
public transport pricing, which will consider the impact of        maintained with appropriate facilities (and lighting, where
the pandemic, while Infrastructure Victoria has published          appropriate) can enhance people’s quality of life and will
research about the post-pandemic commute. Research                 remain an important asset as we emerge from the
conducted by mobility service Moovit found that respect            pandemic. Investing in infrastructure to make cities safe,
for social distancing, provision of hand sanitizer and             attractive, and globally recognisable at night (for example,
increased frequency/less crowded vehicles were the                 via permanent creative lighting displays) will be important
highest rated factors to encourage public transport use            for long term success. This is particularly relevant in the
during the pandemic. Meanwhile, the Property Council has           growing ‘experience’ economy and the demand for
proposed three months of free public transport, off peak           photogenic and ‘Instagrammable’ scenery.
fares and the inclusion of public transport in pre-purchased
                                                                   Many night time businesses cite regulation as a challenge,
event tickets to revitalise Melbourne’s CBD. Flexible office
                                                                   however, increased flexibility by local, state and national
work times may also support the alleviation of this issue.
                                                                   government enabled necessary quick adaptations and trials
Europe: A new era for public transport                             at the height of the pandemic. An opportunity exists for
                                                                   these to become permanent, leaving a lasting legacy, for
In September 2021, one of Europe’s leading public
                                                                   example, the NSW Government has consulted on
transport companies, Arriva, released a report on the future
                                                                   proposals to retain temporary measures and improve
of public transport, in recognition that the substantial
                                                                   planning in relation to outdoor dining, artisan food and
changes to usage experienced during COVID, were likely to
                                                                   drink premises, events, and small live music or arts venues.
remain. Innovative solutions included real-time crowding
information, flexible ticketing, multi-modal transport offers      Localism and support for small businesses rallied during the
and revisions to routes to reflect updated passenger               pandemic. Many businesses citied this as an opportunity,
demand – in addition to more technological solutions such          alongside the potential for increased collaboration among
as demand responsive travel.                                       communities of “likeminded businesses” and governments,
                                                                   such as in Sydney, Melbourne and New South Wales.

“By continuing to address and remove the barriers to entrepreneurism I believe Australia could be positioned as having the best
nightlife in the world. We have all the talent in this country, with support local and state government can have many engines
driving the economy through a diverse and rich night-time industries” (Events business, November 2021)

P a g e | 12                                                                       Prepared by Ingenium Research - December 2021
The City

P a g e | 13   Prepared by Ingenium Research - December 2021
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